SINGAPORE (Aug 14): ValueMax reported earnings of $6.7 million for 2Q19 ended June, a 57.8% increase from $4.2 million in 2Q18 last year, on the back of lower operating expenses.

Revenue for 2Q19 rose 0.7% to $55.4 million from $55.0 million a year ago. Cost of sales fell 3.1% to $41.9 million.

Segmentally, revenue from retail and trading of jewellery and gold business and moneylending segments increased by $0.1 million and $0.6 million respectively, but was offset by a $0.3 million decrease in revenue from the pawnbroking segment.

In line with the decline in revenue, cost of sales also fell 3.1% to $41.9 million from $43.3 million a year ago.

Other operating expenses fell 87.5% to $162,000 due to a decline in allowance for expected credit losses.

There was also an other operating income of $1.2 million due to the increase in facility fees and rental income which helped boost the group’s bottomline.

In its outlook statement, ValueMax says it seeks to continue exploring acquisition opportunities and suitable locations to grow its network of pawnshops and retail outlets, given the prospect of continued volatile gold prices amid current economic uncertainties. The group also expects the pawnbroking and moneylending businesses to continue facing challenges from keen competition, rising operating costs and uncertain interest rate movement.

Shares in ValueMax closed flat at 28 cents on Wednesday prior to the release of results.